Investing.com - The dollar traded higher against most major
currencies on Monday, buoyed by upbeat data out of the U.S. housing
sector and by hopes diplomatic efforts to end the Ukraine conflict
will produce concrete results.
In U.S. trading on Monday, EUR/USD was down 0.29% at 1.3361.
Waning geopolitical concerns in Eastern Europe supported the
greenback on Monday.
Russian and Ukraine foreign ministers held talks earlier, and
while no resolution to end the conflict emerged, the flow of
humanitarian aid deliveries into Ukraine from Russia continued,
which calmed nerves in global markets.
On Friday, news that Ukrainian troops destroyed a portion of a
Russian column of armored vehicles inside Ukraine rattled nerves
across the globe, which pushed the greenback into negative
Elsewhere, upbeat U.S. data boosted the greenback by keeping
expectations firm that the Federal Reserve remains on track to end
its stimulus bond-buying program around October and raise interest
rates some time in 2015.
The National Association of Home Builders/Wells Fargo Housing
Market Index increased to 55.0 in August, a seven-month high, from
53.0 in July, beating estimates for a reading of 53.0.
A level above 50.0 indicates a favorable outlook on home sales
and below indicates a negative outlook.
"As the employment picture brightens, builders are seeing a
noticeable increase in the number of serious buyers entering the
market," said NAHB Chairman Kevin Kelly.
The euro, meanwhile, continued to come under pressure due to
ongoing expectations that monetary stimulus programs in the U.S.
will wind down at the same time the European Central Bank takes
steps to loosen policy.
The dollar was up against the yen, with USD/JPY up 0.20% at
102.57, and up against the Swiss franc, with USD/CHF up 0.44% at
The greenback was down against the pound, with GBP/USD up 0.22%
The pound strengthened broadly after Bank of England Governor
Mark Carney said over the weekend that interest rates could rise
before wage growth picks up.
In a newspaper interview published on Sunday, Carney said that
the bank did not have to wait for wage growth to recover before
raising interest rates, shifting away from comments last week
indicating the opposite.
Last week, the pound slumped after the Bank of England cut its
forecast for wage growth to 1.25% from 2.5% in 2014, before picking
up to 3.25% in 2015.
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.11% at 1.0885, AUD/USD up
0.06% at 0.9326 and NZD/USD down 0.09% at 0.8477.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was up
0.19% at 81.63.
On Tuesday, the U.S. is to release reports on building permits,
housing starts and consumer inflation.
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